Flashbots becomes unicorn after raising $60 million

San Francisco-based firm Paradigm has invested $60 million to support the development of Flashbots’ new Ethereum blockchain transaction packaging software version. 

Notably, the series B funding round contrasts with the current trend among Silicon Valley venture capitalists.

Flashbots fosters transparency

Flashbots, a Cayman Islands-based software provider that bundles Ethereum blockchain transactions, secured funding via “decentralization beauty contest.” This involves selecting investors through reverse pitches.

The funding has led to a valuation of at least $1 billion, as confirmed by a Flashbots representative.

Since 88% of validators collaborate with entities like Flashbots to receive additional fees, this valuation is expected.

You might also like: Flashbots drops new short-term censorship resistance strategy

Flashbots specializes in developing software to address the issue of “maximal extractable value” (MEV), referring to the additional profit earned by blockchain operators beyond regular user fees. 

Techniques like front-running transactions, where operators pay fees to prioritize their trades ahead of others, contribute to MEV. 

The company’s latest technology, the single unifying auction for value expression (SUAVE), aims to reduce the risks associated with MEV by fostering transparency and decentralization in MEV-related opportunities.

Five days after announcing its successful acquisition of approximately $30.4 million in funding, the company has achieved unicorn valuation, as reported in its filing with the Securities and Exchange Commission (SEC) on July 21.

Quiet in the headlines 

Flashbots has not been in the news for several months, with the most recent major headline being when the company faced public scrutiny in November.

Then, the Office of Foreign Assets Control (OFAC) expanded its list of sanctioned addresses to encompass smart contracts for the first time, resulting in several repercussions for numerous Ethereum network users.

The implementation of the censorship strategy coincided with the market’s transition to complete block submission, leading to a clear separation between block builders and validators.

Validators lost the ability to individually add transactions to a block, signifying a notable change in the network’s functioning.

The latest funding round is intended to support the development of SUAVE; the upgrade focused on censorship resistance. 

Given the previous controversy, critics will be keen to observe if this funding helps maintain transparency and efficiency within the crypto space.

Read more: Increasing Flashbots Usage Crashes Ethereum Gas Fees
Follow Us on Google News

Comments

Post a Comment

Popular posts from this blog

Crypto market ‘dramatically underestimates’ bullishness of spot Bitcoin ETFs

Image
“It’s reckless not to aggressively accumulate BTC at current levels,” K33 senior analyst Velte Lund said in a recent report. The potential of a spot Bitcoin (BTC) exchange-traded fund (ETF) approval to drive prices up is dramatically underestimated by the crypto market , claim analysts from crypto research firm K33 — formerly Arcane Research.  In a Sept. 5 market report, K33 senior analyst Vetle Lunde and vice president Anders Helseth said the last three months had greatly improved the chances of a spot Bitcoin ETF approval despite the sentiment not being reflected in the price of Bitcoin or other mainstay crypto assets. The analysts explained while Bitcoin had all but given up its gains in the wake of Grayscale’s legal victory over the Securities and Exchange Commission — an approval would “attract enormous inflows” and significantly increase buying pressure for Bitcoin. Bitcoin returned its gains in the wake of Grayscale's victory. Source: K33 Research However, the downside of ...
Read more

Crypto Bias Blocks People from Seeing Coinbase as Goldman 2.0: Bitwise CEO

In a recent tweet, Hunter Horsley, CEO of Bitwise Asset Management, shared his frustration with the poor attention given to the US-based crypto, Coinbase, claiming that people are “sleeping” on the crypto business. Horsley argued that while big banks like Goldman Sachs attempt to avoid a “slow death” by investing in technology, APIs, and retail services, Coinbase has already achieved what many banks strive to attain. He points out that the exchange has an exceptional institutional team with 25% of the most significant hedge funds as clients, over 50% institutional volume, and a suite of first-class tech products. The Bitwise CEO also claimed that Coinbase co-invented the USDC payment rail, facilitating $2 trillion in transfers in 2022 Q4 alone. Rant — People are sleeping on Coinbase. Big banks like GS are working to avoid slow death by getting into technology, APIs (Apple deal), more retail services (Marcus), while grappling with the heft of legacy biz, rate exposure, ...
Read more

Komodo (KMD) Price Prediction 2023-2030: Will KMD Price Hit $ 0.7 Soon?

Image
Bullish Komodo (KMD) price prediction ranges from $0.4 to $0.7 Analysis suggests that the KMD price might reach above $0.68. The KMD bearish market price prediction for 2023 is $0.1775. What is Komodo (KMD)? Komodo is an open-source technology provider that provides the infrastructure and tools for the new decentralized financial system. With Komodo, anyone has the capability of launching a branded decentralized exchange, cross-protocol financial applications, and independent blockchains.   The project’s flagship end-user application is Komodo Wallet (formerly AtomicDEX). It is a non-custodial multi-coin wallet, crypto bridge, and DEX rolled into one app. Being compatible with 99% of cryptocurrencies, Komodo Wallet offers the widest cross-chain, cross-protocol trading support of any decentralized exchange. Komodo Wallet’s DEX feature is built using a peer-to-peer (P2P) atomic swap protocol with decentralized order books. Developers use ...
Read more